Money Laundering Warning Signs

In any business, money laundering is a serious offense, and it might mean that further fraud is taking place. Unfortunately, that means that you could be in the middle of a fraudulent scheme, but you’re not sure.

When this happens, you’ll need to recognize the signs of money laundering and federal securities violations. Once you know what you’re looking for, you can know for sure whether someone at your company is involved in money laundering.

Reluctance to Share Information

When someone is laundering money, chances are good that they want to keep it a secret. It could mean serious trouble for them, so they might not be forthcoming with information you need. For example, you might have questions about certain transactions or related companies that your company has made some deals with.

If the person involved refuses to give you information, or if the information they do give you takes time and effort to get, you may need to look deeper into that information. They might be truly hiding something from you.

Strange Transactions

In most cases, there might be transactions you’re confused by that have a reasonable explanation. Often, you might not recognize an account at first, or you might have questions about a transaction taking place.

These unusual transactions might not make any sense, leading to losses that no one complains about or sues for.

While the occasional transaction you don’t recognize isn’t rare, it could be a sign of something more serious.

Overly Complex Structures

Sometimes, it’s the structure of the company itself that doesn’t make sense. You’re unclear who answers to who, and you’re struggling to get the answers you need about it. The structure of the company seems too complicated to be practical, so you’re not sure who’s in charge.

This is by design. Money laundering often involves complex setups and shell companies, which are meant to distract from the serious offenses happening within the company. It can also protect those responsible for the money laundering. If you’re unable to determine who’s responsible for the money laundering, it can protect those in charge of the offense.

Unexplained Changes in Instructions

You might have had specific instructions, but things can change quickly in the world of finances. As such, it’s not uncommon for things to change quickly, without much warning. But, when that change comes without any reasoning behind it, something might be wrong.

When the instructions you have regarding money in your company change, you should be able to ask and get the information you need about the situation. They may be reluctant to answer, or they might avoid answering you entirely.

Stopping Money Laundering

Unfortunately, money laundering schemes are a major issue, and they could mean that other types of fraud are also happening. Money laundering is a serious crime, and you might be worried about one thing already: Is my company committing this crime?

Unfortunately, that just might be the case. You might be seeing warning signs, and that means it’s time to do something about it.